Within any industry there are myths, and it is sometimes up to those with valuable insider knowledge to set the record straight! An experienced car insurance employee recently took to the wildly popular TikTok format to address several myths that American motorists face when thinking about getting coverage. Even though many viewers felt like “they were being scammed” after taking it in, there are some important sentiments to consider about the industry as a whole while attempting to gain a better understanding.

Theft Alert: Understanding How Car Insurance Handles Stolen Items

If you suffer the misfortune of having your car broken into, the thief may want to take items such as your smartphone. Even though you will not get money back from your insurer to cover the phone itself, there are many other benefits of having a policy against it. Your personal injury protection, bodily injury liability, property damage liability, collision, and comprehensive elements still are in place as incredibly valuable elements of safety for you each time you hit the road. It’s key to know that belongings that turn up missing from your car can subsequently be covered under your homeowners or renters policy.

Seeing Red? Common Misconceptions About Car Color and Insurance

A very common misconception about car insurance is that owning a red or otherwise very bright car will cause your premiums to rise drastically. This particular employee wanted to be very clear that this is not at all what underwriters are looking at when they dictate premiums. It is other elements such as your driving record, how often you use your car, and your age and gender that make a huge difference. Over time, the data is NOT in support of red cars speeding more and causing more accidents. 

Age Ain’t Just a Number: Questioning Bias in Insurance Coverage

Even though popular opinion can sometimes seem otherwise, there is not a rule set firmly in stone that dictates a sizable discount on your auto insurance when you reach the age of 25. Reaching the point where you are now in that bracket can provide factors that lower your premium, but it is not a solid guarantee. Younger drivers pay higher premiums simply because they lack experience, and so rates should naturally become lower as you age. 

One great way to enjoy a valuable discount on your premium is by being loyal, which can reward you with value pricing. Bundling your auto policy with others such as homeowners can also help keep costs down. Getting good grades and being a retired or active military member can also help out when it comes To feeling less pain in the pocketbook each month. Purchasing your coverage online or paying in a lump sum instead of monthly will also bring you a smile when it’s time to shell out for monthly bills. 

Pooling Risks, Sharing Rewards: The Dynamics of Auto Insurance

When you eagerly pull into gear and are ready to hit the road, your insurance premium is combined with the premium paid by other drivers out there embarking on their journey. This is the “pool” that companies use to pay out claims, and keeps things illustriously in a quite large facet of shared risk. After your money is in the pool with everyone else’s, and if you have an incident, money is derived from you to formidably pay out others’ claims. Risk is an element of practicality rather than a precarious nature: others on the same road increase the chance of unfortunate (and potentially expensive) events happening. 

State Lines, Rate Lines: The Connection Between Registration and Insurance

The topic of state registration is important for anyone planning to cross state lines during a major transition in life! Whatever state your vehicle is registered in is the location where your policy should originate as well. Since nearly all states have their own requirements for minimum amounts of coverage, it’s best to know ahead of time exactly what you are dealing with. Here in Missouri, the minimum limits are $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property. 

The past few years have brought about a sentiment that much like everything else, insurance rates will keep rising and drivers won’t see any relief. Rumors on the internet can tend to fly around quite quickly, and what is rumored to be a detailed first account may not be at all accurate. The “short rant” format video has grown popular as consumers are eager to vent about inflationary concerns and whether or not they are advocated for in the real world. We have had our customers’ best interests in mind every time we look at a fitting policy, and provide you with the best in auto insurance coverage

Destination Coverage: Wrapping Up Insights for the Best Car Insurance

We understand that some individuals may feel that the insurance industry is in a very intense shift cost-wise. The average cost of full coverage car insurance increased by 26 percent in 2024, with several governing factors remaining prevalent. Some drivers think that traits such as the color or make of the model may be “what ails them”, but its elements such as the driver’s history and credit that affect things most. Driving is a skill learned over time, and teens tend to pay more until they reach a more standard-risk group. 

When the world undergoes drastic change, industries such as ours do too, but we are standing by to put together a comprehensive solution. Contact us today at the Alexander Insurance Agency of St Charles to shop for your best rate: we have every intention of steering you toward affordability!